Critical Profitability Ratio Analysis under Limelight: The Williams Companies (NYSE:WMB), CF Industries (NYSE:CF)

Moving on tracing line, The Williams Companies, Inc. (NYSE:WMB) need to consider for profitability analysis, in latest session share price swings at $28.56 with percentage change of -0.49%.

The Co has negative -15.40% profit margin to find consistent trends in a firm’s earnings. Gross profit margin and operating profit margin are its sub parts that firm have 78.40% and -22.40% respectively. WMB has returns on investment of -2.40%. The returns on assets was -2.30% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of -20.90%, which is measuring profitability by disclosing how much profit generates by WMB with the shareholders’ money.

The firm attains analyst recommendation of 2.20 on scale of 1-5 with week’s performance of -11.91%. The firm current ratio calculated as 0.70, this value is acceptable if it lies in 1.3% to 3%. But its varies industry to industry. To strengthen these views, active industry firm has Quick Ratio of 0.60, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 5.09, sometimes its remain same with long term debt to equity ratio.

Waking on tracing line of previous stocks, CF Industries Holdings, Inc. (NYSE:CF) also making a luring appeal, share price swings at $33.98 with percentage change of -1.54% in most recent trading session.

Profitability Valuation

The profit margin can answer significantly to find consistent trends in a firm’s earnings, the Co has positive 1.80% profit margin that indicates every dollar of sales a firm actually keeps in earnings, and the larger number indicates improving and vise worse. Gross profit margin, operating profit margin are its sub parts that firm has 26.10% and 9.40% respectively. Moving toward returns ratio, CF has returns on investment of 8.30% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as 0.50% hat gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 1.70%, which is measuring a corporation’s profitability by revealing how much profit generates by CF with the shareholders’ money. The firm attains analyst recommendation of 2.70 on scale of 1-5 with week’s performance of 1.52%.

Moving toward ratio analysis, it has current ratio of 3.00 and quick ratio was calculated as 2.70. The debt to equity ratio appeared as 1.44 for seeing its liquidity position. The firm attains analyst recommendation of 2.70 out of 1-5 scale with week’s performance of 1.52%.

 

About Devon Leftovich

Devon Leftovich is an entrepreneur. He has been writing and editing professionally for over six years. He is admin editor and senior content writer of SWR. However, he has determined to give investors something rare, a dignified partner who can manage money with integrity and a clear conscience about the degree of due diligence behind investment decisions. He said, "I love the financial world because it is like one big puzzle and I hope we the SWR help each other out to solve the puzzle to help us realize our dreams." Interests: Analysis of different Companies; including news and analyst rating updates. He performs analysis of Companies and publicizes important information for investor/traders community. Stocks long-term and short-term holding views, Tech Stocks

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